No. This is mostly to avoid constant running between the neutral zone and any area of a fight to sell everything, and to keep your figs from becoming too hodgepodge. The equipment on a defeated foe is hence considered 'broken' or 'damaged', but you get gold from killing them (and typically enemies with more equipment will yield more gold) to replace the loot.

The NPC's move and Egon is stabbed once again, but damage once again equals his armour!

The Falx is then stabbed down by the Black Knight who slaughtered the swordsmen earlier. Not bad for a guy with a broken shield.

Almond takes what was a potentially very nasty hit from the stolen banner, but the damage is again, pretty low (3).

I can describe the rest of the round as follows: lots of hits, lots of parries, very low damage. The Falx are driven back to where I can at least pose them properly and half of them have more than one opponent on them, but no one dies. Then Sir Egon the Quick leaps down the slope...

Having witnessed how effective backstabbing can be, he does just that, killing an unsuspecting soldier outright. (+1 XP for Sir Egon, +1 G for Sir James)